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The role of creative industries for poverty reduction

Christer Gustafsson, Ph.D.

Director Regional Museums of Halland and Heritage Halland (SE)Secretary ICOMOS International Scientific Committee on Economics of Conservation

The World Bank, Washington D.C.M2-3 May, 2011

The aim of this chapter is to discuss:

Aim of this chapter

- the new challenging situation to link strategies for conservation of urban heritage to territorial innovative systems aiming at sustainable development

- cooperation with the emerging culture and creative industries

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Łódź Poland

Łódź Poland

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Łódź Poland

Łódź Poland

Investment 250 million euro

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Łódź Poland

Łódz Polen

Investment of € 250 millions

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Łódź Poland

Łódź Poland

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Łódź Poland

Scenes of the American film director David Lynch's 2006 film Inland Empire were shot in Łódź.

Łódź Poland

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Łódz Polen

Investment of € 250 millions

A Trading Zone for Sustainable Development

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The Halland Model

Working places with no displacement effects – Long-term - Reduced unemployment

Historic environment sector Labour market sector

Funding - Experience from major projects’ networks - Higher quality in conservation

A Trading Zone for Sustainable Development

Increased volume of construction - Trainee posts - Contribution to private sector

Historic environment sector Construction industry

Employment and apprenticeship - Capability - Knowledge

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A Trading Zone for Sustainable Development

Training - Financing - Networks

Labour market sector The construction industry

Impact on the whole trade and industry - Vocational certificate -Future employmentFuture employment

Save the jobs

The Halland Model

- Save the jobs- Save the craftsmanship- Save the buildings

- New activities on the improved premises - infrastructure

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Train unemployed construction

The Halland Model

Train unemployed construction workers in traditional building techniques.

Practice in conservation projects.

A Trading Zone for Sustainable Development

Sustainable development

Projectplan-ning

Conser-vation

Culture economy

Trading Zone

New activities on improved premises

Cultural heritage

Labour market policy

etc.

Environment protection

Turism etc.

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Facts Halland (Sweden)

A Trading Zone for Sustainable Development

1.100 = One third of all construction workers trained in traditional techniques

235 new permanent jobs

100 historic buildings conserved

80 Million US $ in a period of ten years

A Trading Zone for Sustainable Development

 

 

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”the Promised Land”

1990 850.000 inhabitants

Łódź

2003 782.0002009 742.000

2000 Appr 200.000 people unemployed2004 20 %2008 6,5 %

Łódź Poland

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Łódz Polen

Investment of € 250 millions

Łódz Polen

Investment of € 250 millions

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Łódź Poland

Łódź Poland

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Nowe Centrum ŁodziThe New Center of Lodz

In February, 2007, the authorities of Lodz decided to entrust the creation of the concept of thecity centre redevelopment to ROB KRIER, the famous Luxembourgian architect and urbanplanner. Encouraged by (World Art Foundation), founded by Andrzej Walczak, one of theowners of Grupa Atlas, David Lynch, a film director, and Marek Żydowicz, the director of theCamerimage festival, Rob Krier undertook to transform the derelict areas in the vicinity of theŁódź Fabryczna station and the EC1 heat and power plant into a place teeming with life – thenew cultural city centre. Krier has designed an urban development concept for the 30-hectarearea in the city centre within the premises limited by Kilińskiego, Targowa, Narutowicza andTuwima streets.

The urban concept - stage 1Festival – Congress

Centre

Special Art Zone

Railway Station

Special Cultural Zone

Kobro Market

EC-1 West

EC-1 East

Kobro Market

Streets of Four Cultures

EC-1 South - East

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Łódź Poland

Special Art Zone

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EC 1 East

Driving forces for long-term economic growth- Innovation- Entrepreneurship

Territorial Economic Development

p p- Knowledge economy- Welfare and health- Regional and territorial cohesion- Sustainability

- Creation of jobs- Attraction of talents- Inclusive growth and cohesion

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The creativity-based attraction model of Richard Florida, which emphasizes the role of quality of life and of technological infrastructure in the creation of a critical mass for the emergence of a knowledge-orientated economy (3T: Technology, talent, tolerance).

Territorial Economic Development

The competitiveness-based urban renovation model of Michael Porter, which is focused on the transition from an investment-based industrial orientation toward a self-sustaining innovation-based economy.

The capability-based model of Amartya Sen, which underlines the central role of general social involvement in capability-building activities as a prerequisite for viable economic development.

The system-wide cultural district theory by Pier Luigi Sacco demonstrates how culture plays a dual role in regional development processes:

d i i f t th id f dd d l d ti iti th h h li lt lt l

Territorial economic development

- as a driving factor on the side of added-value production capacities through channeling culture, cultural heritage and creative industries,

- offering a social platform for innovation and spreading the cognitive knowledge and relational skills necessary for the construction of a complete paradigm of knowledge economy.

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The “cultural sector”- Non-industrial sectors producing non-reproducible goods and services aimed at being "consumed" on the spot (a concert, an art fair, an exhibition). These are the arts field (visual arts including paintings, sculpture, craft, photography; the arts and antique markets; performing arts including opera, orchestra, theatre, dance, circus; and heritage including museums, heritage sites,

Cultural and creative industries

archaeological sites, libraries and archives).- Industrial sectors producing cultural products aimed at mass reproduction, mass-dissemination and exports (for example, a book, a film, a sound recording). These are “cultural industries” including film and video, video-games, broadcasting, music, book and press publishing.

The “creative sector”In the “creative sector”, culture becomes a “creative” input in the production of non-cultural goods. It includes activities such as design (fashion design, interior design, and product design), architecture, and advertising. Creativity is understood in the study as the use of cultural resources as an intermediate consumption in the production process of non-cultural sectors, and thereby as a

fsource of innovation.(KEA, 2006).

Annual turn-over

Cultural and creative industries EU 30 (KEA, 2006)

Car manufacturing industry 273 Billion EuroChemical industries 271 Billion EuroICT manufacturers 541 Billion EuroCulture and creative industries

654 Billion Euro

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Annual turn-over

Culture and creative industries 1,3 Trillion US$

Cultural and creative industries (Global)

7 % Global GDP

Growing on an annual rate twice that of service sector and four times that of manufacturing sector in OECD countries.

(UWR, 2009)

Economic contribution of culture

Brazil’s creative sector 6.7% of GDP (1998)

3 Cultural and creative industries

Guatemala – creative industries grew at a rate of 7.3% annually 2001-2005 and employed 7,14% of the labour force (UNCTAD, 2008)

Mali’s culture sector accounts for 5.8% of employment and 2.4% of GDP (IBF, 2007)

Colombia craft production 400 Million US$ (UWR, 2009)

Morocco's crafts production 19% of GDP (UWR, 2009)

Thailand’s craft-workers are estimated to be 2 million with almost half working full-time (UWR, 2009)

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Culture a vehicle for economic development

Creative industries

Cultural tourism- 40 % of global tourism revenue (UNWTO, 2007)- 10 % EU GDP (UWR; 2009)

Traditional livelihood- Local knowledge and generate employment

Opportunities for economic growth through micro-enterprises- Low capital investments

Cultural infrastructure and institutions- Tate Modern is estimated to bring in revenues of over £ 100 Million to London every year

Placing greater emphasis on innovation and having an innovation-driven development strategy in place that focuses on each region’s strength and competitive advantage.

Based on evidence and strategic intelligence about a region’s assets and the capability to learn what specializations can be developed in relation to those of other regions, in the globalization society

Smart specialisation strategies

Mindful of the region’s history and territorial characteristics and broader geographical context.Regions should decide to invest in areas best suited to developing their competitive advantage and identity where

clusters should be nurtured.Regional economies should be differentiated to avoid waste of resources and duplication – creation of more diversity

among regions.

R i l P li t ib ti t t th i E 2020 (E C i i )Regional Policy contributing to smart growth in Europe 2020 (European Commission)

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The cross-sector dynamics

- The relation between culture and industrial production - the crucial role of the design product in the market behavior (Postrel).

- The increasing interest in culture as a catalyst and as an activator of the local development processes (e.g. the

3 Cultural and creative industries – theoretical framework

g y p p ( gGreater London Council).

- The scope of culture-led renovation processes for the urban and regional areas has developed subsequently both at the theoretical and at the policy level, fed by the evidence of the culture's positive effect on the economic (Landry, Rullani) and social (Matarasso, Everingham) aspects and on the built environment (Bianchini and Parkinson, Graham, Hutton).

- The international debate about the role of culture, and of cultural and creative industries in particular, in the development processes of the post-industrial economies (Howkins, Hartley).

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The global society of today is facing three major challenges: climate change; l b l d / l l

1 Poverty Reduction and Sustainable Development

global economic competition; and poverty/social exclusion.

Poverty reduction agenda for developing countries (the World bank)

Presentation of the comprehensive concept of sustainable development: economic, social and environmental.economic, social and environmental.

Creativity and creative communities may be the remaining enduring resources in the developing world (Jodhpur Consensus, 2005)

3 Cultural and creative industries – theoretical framework

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Delineation of the cultural and creative sector

(KEA, 2006)

Quantifiable socio-economic impact of the cultural and creative sector (EU30)

(KEA, 2006).

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4 Sustainable Integrated Conservation

The role for culture and built cultural heritage as a development strategy against poverty (UN World Commission 1995)

Discussion about contemporary theory of conservationDiscussion about contemporary theory of conservation - understanding why, and for whom, things are conserved (Muñoz Viñas).- contemporary theory of conservation as based on negotiation, on equilibrium, on discussion and on consensus. - the values of cultural heritage analyzed and described as values in trade and conservation should leave the expert-only zone to enter the trading zone, where the objective is to trade to reach an agreement between affected people. (see e.g. Sörlin, Gustafsson).

Integrated conservation: a well developed theoretical scholarly-professional discourse and multi-disciplinary-oriented platform, especially intangible multi-factor quality dimensions. Parallels observed between natural and cultural capital, which implies that the concept sustainable development can be applied to culture and cultural heritage (Appleyard, Throsby, Engelbrektsson and Rosvall, Della Torre, Fusco Girard).

Sustainable Integrated Conservation (e.g. Gustafsson and Rosvall).

4 Sustainable Integrated Conservation

City regeneration – productivity and growth – poverty reduction-DensityA l-Agglomeration-City management, urban planning-Upgrading slums-Forming city systems – city clusters-Attracting people-Job creation/new employment opportunities-On-the-job training for unskilled workers

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4 Sustainable Integrated Conservation

Supporting city economies-Cities – engines to economic growthI-Increasing competitiveness-Develop cultural heritage assets to sustainable tourism-Brownfield regeneration and urban revitalization